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While new-style ATMs, post offices and community centers will never replace old-fashioned bank branches, we must accept that the banking landscape of yesteryear will never return. Gone forever, shattered.
Where service once dominated with a smile (occasionally with a frown), machines now rule the roost. And not even a resurgent Labor Party, which promises the country the world and more, will be able to change this after – as widely expected – it becomes our new government on July 5.
While the Labor Party is expected to include in its manifesto, published this week, a promise to ensure there is face-to-face banking advice on every high street, it is difficult to see how this will be delivered. For starters, existing legislation will likely need to be amended. This is because the current rules, introduced last year after a tortuous delay, are aimed at safeguarding access to cash, not advice.
Will such legislative manipulation be a priority for an incoming Labor government? I’m not sure. He has more important things to do.
I’m also sure that banks would fight tooth and nail to resist any new rule that would force them to spend more money on traditional banking. Its focus is now on the digitalization of banking services.
Innovation: Traditional ATMs only accept deposits from customers of the bank under whose name the machine operates.
As a result, under a government led by Sir Keir Starmer, the only thing that can be guaranteed when it comes to banks is that branches will continue to wither. In fact, a few days ago, a prominent banking expert told me so.
He said “hundreds more branch closures” would be announced before the end of the year, regardless of who occupies 10 Downing Street. So my prediction is that the banking landscape that is taking shape before our eyes will continue for at least the next five years.
It may not be to everyone’s taste, especially those who (understandably) love going to their bank every week to withdraw cash and chat to a friendly member of staff. But it should at least ensure continued access to cash – and basic banking services – in most communities across the country.
The first pieces of this puzzle are already in place: a national network of post offices offering basic banking services to everyone, including small businesses; and an army of free-to-use ATMs throughout the country, although increasingly smaller. Cashback services are also widely available, vital in rural communities.
The next pieces of the puzzle – the banking centers – are falling into place, albeit slowly. These centers allow customers of all banks to access basic banking services. Representatives from major banks are also available on specific days of the week to help those with more complex financial problems.
So far, there are 54 centers operating in cities that have lost all their banks. But many more have been approved (80) and are waiting for suitable premises to be found.
And, as an increasing number of cities become bankless, I imagine Cash Access UK, the organization responsible for getting the centers off the ground, will be given the green light to launch more. 350? 500? Who knows?
Another piece of the puzzle is also falling into place. Three new Cash Access UK ‘super’ ATMs have been put into service in recent days in Atherstone (Warwickshire), Heathfield (East Sussex) and Swanage (Dorset). These are towns that have lost their banks in recent years, although building society Nationwide maintains a branch in both Atherstone and Swanage, while Barclays offers a part-time cashless “local” service at parish council offices in Heathfield.
What makes these new machines “super” is that they accept deposits from customers of most major banks (the exceptions are Santander, Metro and Nationwide). Traditional ATMs only accept deposits from customers of the bank under whose name the machine operates.
This multi-bank deposit facility will be particularly attractive to small businesses that need to deposit their cash income on a regular basis. The closures have made it difficult for many businesses to store cash, forcing them to travel further to find a branch that accepts their deposits. Some have had no choice but to go cashless, angering shoppers who prefer to use cash.
Although this new generation of ATMs is being tested, it is here to stay. Fourteen more super ATMs will come online by the end of this month, and another 50 or 60 will open before the end of the year. This is a welcome development.
Martin McTague, national president of the Federation of Small Businesses, says super ATMs are an “important innovation” that will allow consumer-facing businesses (mainly small retailers) to “securely deposit their earnings for the day without closing early or travel miles.” .
Gareth Oakley, director of Cash Access UK, agrees. He says deposit-taking ATMs are a “vital” cog in preserving access to cash.
So while it’s far from perfect, the emerging banking landscape should protect access to cash for a while yet.
- Do you agree? Email jeff.prestridge@mailonsunday.co.uk.
Vital link to the Isles of Scilly
Two and a half years ago, my intrepid colleague Toby Walne endured a torrid 20-minute flight aboard a Twin Otter aircraft to spend some time in the Isles of Scilly.
The trip was not so that Toby could marvel at the incredible scenery of the islands and feast on their delicious seafood. It was to speak to residents upset by the imminent loss of his last bank, Lloyds.
On a mission: State Department reporter Toby Walne on his trip to the Isles of Scilly
Despite the hype and Toby’s vivid reporting, Lloyds closed the branch in April 2022, leaving residents and tourists reliant on a combination of cashback services and post offices to access cash. Lloyds, magnanimously, also kept its ATM open.
A new ATM has now been installed on the outside wall of the St Mary’s Harbor Post Office on the main Isle of Scilly. This means residents and tourists will, in theory, have access to cash 24 hours a day, as long as the machine doesn’t run out of notes (Lloyds’ ATM closed last month).
The new ATM is a great result for local businesses, residents and the more than 100,000 tourists who visit the five islands each year.
Communities that believe their access to cash is not good enough can request a review from ATM network operator Link. Visit link.co.uk/consumers/request-access-to-cash.
Brave Rob was an inspiration.
In May last year, I trudged through the Rob Burrow marathon in Leeds and raised £3,172 to help build a motor neurone disease (MND) care center in the city.
Inspiration: Kevin Sinfield pushing Rob, affected by motor neurone disease, in his wheelchair
I have three indelible memories of the 26.2 mile race: the difficult course; being passed by Kevin Sinfield (pushing MND-stricken Rob in his wheelchair) at mile 16 and crying in admiration; and then watching Kevin physically carry Rob to the finish line on television.
Rest in peace, Rob. When built, the Rob Burrow Center for Motor Neurone Diseases will be a fitting legacy to his courage and bravery in the fight against such a terrible disease.
Tickets heading to the buffers
Paper train tickets are going into reservations in favor of tickets sold on mobile phones or payment by bank card at the station doors. Further proof that we are rushing towards a digital world that, unfortunately, will leave many people behind.
Instead of getting rid of them, I think rail companies should improve their reliability. I buy a weekly ticket for my commute and it’s 50:50 whether it works or not. It’s an absolute pain when the train is about to leave, you can’t get through the barrier and there are no staff available to help you.
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